17. The market rate on a bond fell from 5.76% 10 5.73%. This is a decline of how many basis points? A) .0003 B) .003 C) .03 D) 3 18. The Treasury yield curve is a graph that plots Treasury yields against which one of the following? A) corporate bond yields B) Fed funds rate C) maturities D) inflation rates 19. Which one of the following rates is the rate that banks charge cach other for overnight loans of S1 million or more? A) institutional B) financial overnight C) Federal funds D) monetary 20. McDucket, Inc. generates net profit of $592,000 and has a price-book ratio of 52. Total assets are $2,320,000 and total liabilities are $1,289,000. The company has 560,000 common stock outstanding. What is the price-to- earnings ratio? A) 9.06 B) 9.23 C) 10.12 D) 10.80 21. A firm has paid annual dividends of $1.41,51.43, S1.55, 51.62, 51.64, and 51.68 per share over the past 6 years, respectively. What is the geometric average growth rate for these dividends? A) 3.1996 B) 3.2896 C) 3.48% D) 3.57% 22. Which one of the following facilitates international trade? A) secured bond B) Treasury security C) banker's acceptance D) commercial paper 23. Home Interiors has net income of $258,000. The firm has decided to pay $140,000 of that income out to shareholders. What is the firm's retention ratio? A) 355 B) .412 C) .457 D) 588 24. The sustainable growth rate is equal to: A) ROE (1 - Payout ratio). B) ROA (1 - Payout ratio). C) ROEX (1 - Retention ratio). D) ROA (1 - Retention ratio)